Pakistan to remain on FATF ‘greylist’

  • IASbaba
  • June 25, 2020
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Pakistan to remain on FATF ‘greylist’

Part of: GS Prelims and Mains II and III – Indian and its neighbours; International Relations; Security

In news:

  • Financial Action Task Force (FATF) plenary session decides to continue to keep all countries that were on the “greylist” under scrutiny for Terror Financing and Money Laundering until October 2020. 
  • That means Pakistan to remain on FATF ‘greylist’.

Do you know?

  • Pakistan has faced criticism due to its failure to meet the finance watchdog’s 27-point action plan on countering terror financing and anti-money laundering (CFT/AML) measures.
  • Pakistan has also failed to act against groups like the Lashkar-e-Taiba (LeT), Afghan Taliban and affiliated HQN.

According to US’s 2019 report on terrorism, 

  • Pakistan allowed groups targeting Afghanistan as well as groups targeting India to operate from its territory
  • Pakistan continues to “serve as a safe haven” for regional terrorist groups.

From Prelims Point of View:

Financial Action Task Force (FATF)

  • Inter-governmental body established in 1989 on the initiative of the G7.
  • Secretariat is housed at the OECD headquarters in Paris.
  • Generate the necessary political will to bring about national legislative and regulatory reforms in various areas
  • to set standards and promote effective implementation of legal, regulatory and operational measures
  • Combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.

To know about objectives and mandate of Financial Action Task Force (FATF), CLICK HERE

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